Study On The Pricing Problem Of Management Buy-out (MBO) In Chinese State-owned Enterprises

Management Buy-out (listed MBO) produced in the 70s and 80s, 20th century in European and American countries. Since 2002, MBO has been adopted extensively as a kind of brand-new reform way, and has become one of the main methods in Small and medium-sized state-owned enterprises reform. MBO has very important meanings in adjustment state economic structure, optimizing state-owned assets disposition, acceleration reforming system of small and medium-sized enterprises, arousing the enthusiasm of staff and improving managerial skill. While MBO is of great significance in reform of state-owned enterprises, but we should also realize that, As Chinese capital market and legal system is not perfect, the relevant rules have yet not to be established. At present, MBO has still facing pricing, financing, drawbacks in the system and many other issues in China. In these issues, pricing problem makes a particularly sensitive issue, and also the most important issue, because it is concerning about the loss of state-owned assets. Pricing problem is the core issue in Management buy-out.This dissertation analyzed the current situation and problems of MBO pricing in Chinese state-owned enterprises, pointed out that the transfer pricing of MBO in Chinese state-owned enterprises had been not fair. The root of the problem is the lack of a rational, transparent, fully market-oriented pricing mechanism and the operation of the process. By comparative analysis between American and Chinese classic MBO cases, drawing advantages of the MBO market-oriented pricing mechanism from America. This dissertation focus on how to establish a fair and reasonable price mechanism in China, so that make a better service for the reform of Chinese state-owned enterprises.There are six parts in this paper:Part one is the Foreword, which states the background, the purpose, the meaning, and the domestic and international situation of the research on pricing of MBO. Part two is introduction of MBO and related pricing theory. Firstly, it introduced the definition and characteristics of MBO; secondly, it analyzed the deep-rooted cause of MBO in state-owned enterprises; thirdly, it pointed out that pricing problem is the core issue in Management buy-out. Finally, it briefly introduced the related pricing theory of MBO.Part three is analysis on the current situation and problems of MBO pricing in Chinese state-owned enterprises. This part mainly analyzed the current situation of MBO pricing, and then analyzed some problems in the pricing method and the pricing process. Finally, it pointed out that the lack of a reasonable, fully transparent and market-oriented pricing mechanism and operation process of MBO is the key to the pricing problem.Part four is classic cases study on MBO related to the pricing mechanism. This part make a comparative analysis between two pricing mechanism of MBO, it pointed out the market-oriented pricing mechanism that the United States used had been more reasonable than the non-market-oriented pricing mechanism that Chinese used. The experiences from America are very important for us to learn. Finally, by analysis on the first case of MBO market pricing in China, to make a foundation in improving the pricing mechanism of MBO.Part five is most important. This part mainly discussed the purchase price solutions of MBO in Chinese state-owned enterprises. It thinks that reasonable pricing models must combine market-oriented pricing means. Establishing and improving a market-oriented pricing mechanism for management buy-out of state-owned enterprises is the key to solve the pricing problem. Finally, it put some specific suggestions on establishing and improving the pricing mechanism of MBO in Chinese state-owned enterprises.Part six is the conclusion. To solve the pricing problem of MBO in Chinese state-owned enterprises, deciding to use which model is not the best way to solve pricing problem. Instead, establish a reasonable, fully transparent and market-oriented pricing mechanism and the operation of the process, through the improvement of merging market, legal system to ensure that all aspects of price is just, fair and open. Make sure MBO play a positive role in state-owned enterprises reform.Making a general survey of this dissertation, it has some characteristics in the following aspects:1. Many studies concerned how to make a reasonable pricing mode in MBO. But, this dissertation pointed that reasonable pricing model is only one aspect of MBO pricing issues, but not fundamentally solve the pricing problem. This dissertation focus on how to establish a fair and reasonable price mechanism for resolving pricing problem of MBO in Chinese state-owned enterprises.2. This dissertation argues that because the lack of a proper and full competition in the M & A market, the absence of an effective pricing mechanism for enterprise property rights, it will be difficult to resolve the crucial issue: pricing problems. Therefore, a systematic analysis of the property market, the competitive mechanism, the intermediary institutions, The information disclosure system and government behavior problems on how to solve these problems and put forward some proposals and measures to rationalize.3. This paper uses methods of a combination of case study analysis and comparative analysis, put a comparative analysis between the two pricing mechanisms. This dissertation also uses methods of a combination of qualitative and quantitative analysis of the study, study on quantify the contribution of a certain history of the management, but still immature, and there are still some limitations left for later resolution.